Things like inflation, insurance policies and exorbitant prices on medical supplies are just a few. Phones are more convenient than ever but the associated costs can be an unexpected mystery. Even watching a little TV can bring on stressful surprises when the bill comes in. Despite all the obvious adult money issues that confuse us, there are kids that still believe money really does grow on trees. That's why it's never too soon to start financial lessons with your kids and grandkids!
It’s amazing how many kids think you can buy whatever you want if you have a credit card. It doesn’t occur to them that the credit has to be paid off. When you reach for the plastic, explain to them the limits. Teach them you can’t put more on the card than you can pay back in a reasonable time frame.
Avoid impulse buys and let your kids see your willpower. Make them aware when you want something but instead you opt to hold off until the money is there to buy it. When they see you wait, they will learn patience in spending, too. Kids are sponges and are soaking up the actions of the adults around them more than we think!
Your child wants a new toy and the temptation is there to buy it for your precious angel. That isn’t teaching them anything except that persistence pays. But in this case, we are learning about money, and not just spending it. Make a chart with a variety of chores listed. Beside each chore list what they will earn when it is properly completed. Let them do the math of how many or what combinations of jobs well done will earn that particular toy. When they work for it, they will also learn appreciation and will more than likely take better care of their things.
Junior’s Adventures Story Time Book Set
Dave Ramsey is a well known financial advisor. Do you know he also inspires ways to teach children about money? He has several tools to help, one being a beautifully illustrated set of stories in which your kids can learn the importance of money. Junior is the character in the books with a point of view that kids will want to follow. This is a six-book set that will allow kids to share adventures with Junior as he learns about work, spending, giving, integrity, saving and debt.
Make it Clear
Putting money away in a fund, bank account or even a plastic piggy bank are great ways to save. But is it REALLY teaching kids about saving? They will know the money is tucked away somewhere, but seeing is believing.
Let your child watch their savings grow in a clear container. Whether a glass cookie jar or a plastic dollar store container with a screw on lid, seeing the coins and bills stacking up will be all the evidence they need to keep on saving.
There’s no doubt that kids love electronics, so why not turn those idle games into something that will teach real life money skills? FamZoo is an app the whole family can get into. This app makes it easy to keep track of allowances, chores and other money-related activities. Parents are the bankers and can send money directly to their kids. The uniqueness of this app is that every family member is connected to make it easy to move money between each member instantly. This app is also great for teaching basic money management and budgeting skills.
If your kids aren’t old enough to open up their own bank account but are excited to get started, teach them basic money tracking and checkbook-balancing skills with Bankaroo. The app works like a virtual bank where kids can enter allowances received, set savings goals and report how much they have spent. Parents can also send gifts directly through the app.
This money collector is a multiple award winner! Moonjar teaches kids a lifetime lesson of how to wisely save, spend and share with a compartment for each category. This teaching tool is used in homes and schools worldwide. Many parents agree that the spend/save/share method is the perfect tool for teaching kids about managing money. It is a good way for them to learn the difference in spending, giving, and saving.